Contracts
What is a right of first refusal and how does it differ from an option?
AThey are legally identical
BA right of first refusal requires matching a third party's offer; an option gives the right to buy at a predetermined price✓ Correct
CAn option requires matching offers; right of first refusal has a set price
DRights of first refusal are only for commercial properties
Explanation
A right of first refusal allows the holder to match any offer received by the owner before the property can be sold to another. An option grants the right to purchase at a specific pre-agreed price during a specific period, regardless of other offers.
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